​Why We Stopped Saving So Much... and Started Living

One lesson I’ve learned from my retired clients is that it’s human nature to feel anxious
about spending money especially when the paycheque stops and you’re drawing
down your own savings and investments. After decades of watching account balances go up, it’s deeply uncomfortable to watch them go the other way. It just doesn’t feel good.

What happens next is often a retirement of chronic underspending. Even worse, when you really think about it, are the decades of saving too much and forgoing some of life’s pleasures along the way during your working years, only to see that money sit there, untouched, in retirement. No one wants to die with millions in the bank and regrets in their heart.

Bill Perkins, author of Die With Zero, puts it plainly: the point of life isn’t to die with the
most money in your account. And no, it’s not about literally dying with zero dollars,
either. It’s about dying with zero regrets. 

Now you may be thinking Brandon, you’ve always preached that living below your
means and saving every month are key pillars to building a secure retirement – and it’s
still true.

Slowing Down and Turning OFF the Savings Tap
I’ve taken this lesson to heart, both through my clients’ experiences and in my own life.
In my 20’s I was saving 50-70% of everything I earned. I was laser focused on building
my nest egg early while my expenses were low and I knew I could live modestly before
starting my family. And it worked! I did a lot of the heavy lifting when it comes to
retirement savings so that I can now let the most powerful tools we have, which are compound interest and time, take over for the next 3 decades. Time in the market will always beat trying to time the market.

If I had stayed on that trajectory of a high savings rate, aggressive investing, frugal living
I would have reached retirement with more money. But at what cost? Trips not taken,  memories not made, and health potentially neglected all come to mind.

What Spending Looks Like for Us Now
I believe that in life we have different seasons. My wife and I are now in the season of raising our daughter and it is all hands on deck. I want to spend as much time as I can with her before she grows up and is way too cool for mom and dad. These years are precious and they go by quick. I can't believe Brielle is already 5 months old! 

Brittany is now on maternity leave, so our household income is reduced. Are we saving as aggressively as we once were pre-baby? Not a chance, and that is okay. We are still planning an incredible trip later this year and hitting our goals financially. We are giving ourselves permission to take the pedal off the gas to enjoy this season of life we're in, while we're in it and not just in hindsight. 

Can Slowing Down Increase Your Happiness?
Economists call it consumption smoothing; spending a consistent, reasonable amount
over your lifetime, adjusted as your needs and priorities shift. That could mean elevating your lifestyle now while you're healthy, active, and have your kids at home so you don’t reach the end with a bunch of unspent money and a list of missed opportunities. Is it a difficult mental shift? You bet! Many in their 50’s, 60’s and 70’s might struggle with it.

The Key Is... Balance
This is not about YOLO-ing today and neglecting your future self. And it’s not about
depriving yourself today for a chance to live it up in the future. It’s about balance.
For us, balance means we're still maxing out our TFSA’s annually.
Balance means we're still maxing out Brielle's RESP annually.
Balance means planning some amazing international trips while Brittany is still off on
maternity leave to make incredible family memories together.

I believe with balance and a solid plan, you can live for today while still saving responsibly for tomorrow. 

What This Means For You
If you’re in the savings phase, here’s my encouragement:

• By all means, save aggressively when you’re starting out with the knowledge that it’s okay to level up when your income allows. Give yourself permission to enjoy the fruits of your labour along the way.
• Practice spending. Seriously. If you never flex those muscles, they’ll atrophy. Retirement won’t feel like freedom, it will feel like fear.
• Map your spending to your values. If travel matters, make space for it. If it’s music, or food, or education for your kids – lean into those. Life is short. Make it sweet.
• Run the numbers. A sustainable retirement isn’t about maxing out every tax shelter and living like a monk. It’s about figuring out what you can spend and aligning your money with your goals and values.

And if you’re already retired, or close to it, and feel stuck in saver mode? Remember that you’re not alone. You’ve done the hard part. Now it’s time to get professional advice to evaluate your financial plan and give yourself the gift of peace of mind to spend. Not wastefully. Not recklessly. But intentionally with your values aligned to the strength of your portfolio and assets. Because after working that hard, you deserve to enjoy your wealth and live your dream retirement.